Hell and Hope is Breaking Loose
All hell is about to break loose on Wall Street
and Around The Globe…
Lehman has warned that new accounting rules will force
Fannie Mae and Freddie Mac to raise a staggering
$75 billion in new capital to offset loan losses.
That means both must release a blizzard of new stock
to raise that money.
Investors, faced with a glut of new Fannie Mae and
Freddie Mac stock, had recoiled in horror, creaming those stocks
16% and 18% respectively — in a single trading session.
Hard to imagine: Just one, short year ago, Fannie Mae and
Freddie Mac were considered to be “conservative” investments
— among the safest bets on Wall Street.
But since last August, these two stocks have cratered
- 79% and 82%, respectively.
Think about what that means:
If you had invested $100,000 in these two stocks,
you would now only have less than $20,000 of your capital.
The rest? Poof - Gone with the wind!
And now, Bernanke announced that the Fed is seriously
considering extending its emergency bailout of Wall Street
brokers and other institutions past the September deadline
— indefinitely!
According to Bernanke’s recent Congressional testimony,
we shouldn’t worry about the fact that he’s, in effect, buying
billions of dollars of the lousiest loans from banks and brokers
— or that instead of being backed by U.S. Treasuries,
the US dollar is now backed by junk loans that banks and
brokers can’t unload fast enough.
Nor should we worry that the hundreds and hundreds of billions
of new, unbacked dollars he’s creating out of thin air to bail out
these institutions will destroy what’s left of our buying power
… send our cost of living through the roof
… and bankrupt millions of Americans on fixed incomes.
Some Other Facts to Consider …
— The world population today is 6.677 billion people,
growing at a rate of 1.16% per annum.
— The world will need 50% more food within the next five years,
and 100% more by 2030.
— There are an estimated 20,000 active nuclear weapons in the world,
1,700 tons of highly enriched uranium, and 500 tons of separated
plutonium that could produce nuclear weapons.
ON A BRIGHTER NOTE…
840 million people from around the globe tuned in to watch
the opening ceremony for the Beijing Olympics,
making it the most watched sporting event in history.
The centerpiece of the event was a 480 by 72-foot screen
with 44,000 embedded LED beads that was laid at the center
of the Bird Nest stadium.
That screen, combined with a ring of LED panels that
surrounded the upper deck, delivered a light and multimedia
video show the scale of which has never been seen.
It was an amazing $300 million spectacle that condensed
5,000 years of Chinese history into the most spectacular
visual imagery ever seen.
Michael Fred Phelps (born June 30, 1985) an American swimmer
captured the World’s attention on the big screen.
He won eight gold medals at the 2008 Summer Olympics in Beijing
leading the U.S. Team to Victory.
He now holds the record for the most gold medals won at a
single Olympics - a total of eight, surpassing Mark Spitz.
Congratulations Michael Phelps!
You make us proud to be Americans!
Beijing, Bernanke, Fannie Mae, Fed, Freddie Mac, Lehman, Mark Spitz, Micharl Phelps, Olympics, U.S. Treasuries, US dollar, Washington